Home Building Equity Creation – Build Or Remodel Your Own Home and Create an Equity Bonanza?
Are you thinking of building or remodeling your home? If you have spent any time looking around for a kit home, packaged home, homebuilding books, or a do-it-yourself program you’ve seen some wild claims. What is true?
They usually call it “sweat equity”. The old “do-it-yourself” model of saving money big time. Yes, saving a lot of money, especially in this economy is very attractive, indeed! But, beware! When the economy is rough, and sales slow down, marketing departments and entrepreneurs really start hitting you with exaggerated claims to get your attention.
WHEN IS A GOOD TIME TO BUILD FOR YOU?
Truthfully, only you can decide what is a good time to build or do a major home improvement project. Your income, job security, the amount of cash you have, your credit rating, your time availability … all these things factor in.
Notice that I didn’t even mention the economy. Doesn’t the economy matter? Well, it would be naïve to say that it didn’t. But, it would be a crying shame to let some economic upheaval stand in the way of you reaching your dreams … IF you are prepared. This very well could be a great time for you to make your home building dreams come true. Let me outline a few reasons why then give a way to decide for yourself.
Why this COULD be a good time to build:
- If you need to borrow, rates are at historical lows
- The building industry is very slow now and you can get bargain prices on many homebuilding materials
- The costs of labor are down BONANZAJP substantially in many areas and labor is a big part of the overall cost
- There are many potential bargains when it comes to buying land to build on
Frankly, there is a window of opportunity for those who are financially and emotionally ready to take the leap. Just know that there is always the potential for the market to worsen before it gets better.
My advice is this. If you’re planning to live in and enjoy the home for years – it’s a good time. If, however, your plans are to build a home for “instant equity” and sell it upon completion, all bets are off! No one can say where the market is headed in the short term. So, unless you’re prepared to hang on to it if necessary, I would not take this speculative gamble.
Finally, as to the wild claims, I really can’t say what is reasonable in your market without knowing how you plan to execute your project. Will you do a lot of management and work yourself? Will you use a home-building coach, a site supervisor, or a kit home? What are other homes selling for? How long will it take to build? What is the interest rate on the loan and for how long? There are many factors involved.
Just be sure that you always ask questions and demand proof of any claims. And never move forward until you’ve spoken to the references of any company or individual that you consider working with. Never!